Aboitiz borrows $338 M to fund more acquisitions

By James A. Loyola

AEV International Pte. Ltd., a wholly owned subsidiary of Aboitiz Equity Ventures, Inc., has borrowed US$338 million to finance the acquisition of a 75 percent stake in Gold Coin Management Holdings Limited.

Aboitiz Logo (via aboitiz.com/Manila Bulletin) Aboitiz Logo (via aboitiz.com/Manila Bulletin)

In a disclosure to the Philippine Stock Exchange, AEV said it has signed a facility agreement with DBS Bank Ltd., Mizuho Bank, Ltd., MUFG Bank, Ltd., and Standard Chartered Bank to obtain the acquisition loan.

Wholly-owned subsidiary Pilmico International Pte. Ltd.is expanding to 11 countries in Asia through the acquisition of a controlling stake in GoldCoin from the Zuellig family for $413 million.

AEV said Pilmico International is expanding its animal feeds business in the Asia Pacific region with the acquisition of a 75 percent stake in Gold Coin – one of Asia’s largest privately-owned agribusiness corporations.

Pilmico International is a wholly-owned subsidiary of Aboitiz Equity Ventures, Inc.(AEV) through its Singapore-based holding entity, AEV International Pte Ltd.

Pilmico International signed a share purchase agreement with British Virgin Islands-based Golden Springs Group, Ltd.(GSG) for the 75 percent equity interest in GoldCoin.

The consideration is based on an enterprise value of US$413 million, which is equivalent to 75 percent of the total enterprise value of US$550 million.

After deducting cash-like adjustments, the final cash consideration is US$334million. The transaction will be funded through financing from foreign banks.

AEV said Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of GoldCoin shares from its holding company, GSG.

GoldCoin, which is based in Singapore, is a major producer of animal feeds and operates 20 livestock and aquafeed mills across 11 countries in Asia.

“ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base,” said AEV Chief Operating Officer and Pilmico President and Chief Executive Officer SabinM.Aboitiz.